Indian equities enter the new trading week beginning on August 24 with the Nifty 50 caught between key support and resistance levels, keeping the near-term outlook cautious. The index remains above important weekly moving averages, suggesting that the medium-term structure is still constructive. However, the negative signals on the daily chart and the recent weekly decline point to continued selling pressure.
The Nifty's ability to hold 24,000 will be crucial. A sustained break below this level could deepen the correction, while a move above 24,500 could revive bullish momentum. Bank Nifty, meanwhile, is likely to remain range-bound between 57,000 and 58,700.
Global cues, elevated crude oil prices and geopolitical developments could add to volatility in the coming sessions.
The Indian equity market is likely to remain volatile and range-bound with a cautious bias.
Nifty 50 support: 24,000
Nifty 50 resistance: 24,500
Bank Nifty support: 57,000
Bank Nifty resistance: 58,700
A sustained move below 24,000 could extend the Nifty's correction, while holding above the level could trigger a recovery towards 24,500.
A decisive close above 24,500 would strengthen positive momentum and improve the broader technical outlook.
For Bank Nifty, a breakout above 58,700 could signal further upside, while a break below 57,000 could increase selling pressure.
Indian equity markets ended the past week week lower as investors booked profits across several sectors.
The BSE Sensex declined 0.60 percent to close at 77,540.84, while the Nifty 50 fell 0.50 percent to 24,252.00.
Bank Nifty bucked the trend, gaining 0.50 percent to close at 57,761.90, reflecting selective buying in banking and financial stocks.
Sectoral performance was mixed:
Metal, Realty, Media and Private Bank stocks were among the major gainers.
IT, FMCG, PSU Bank and Pharma stocks were among the major laggards.
The Nifty opened the week at 24,343.40 with a negative bias and touched a low of 24,025.70 before recovering to close at 24,252.00.
On the weekly chart, the index continues to trade above key short-term moving averages, while momentum indicators remain in bullish territory. This suggests that the medium-term trend remains constructive.
However, the daily chart continues to show a negative bias, with the index trading below short-term moving averages and momentum indicators pointing to continued downward pressure.
The Nifty formed a bearish candle on the weekly chart and closed below the previous week's level, indicating short-term weakness.
The key levels to watch are:
Support: 24,000
Resistance: 24,500
A decisive break below 24,000 could lead to further weakness. If the index sustains above this support, a pullback towards 24,500 could emerge. A sustained close above 24,500 would strengthen the positive trend.
Bank Nifty ended the week at 57,761.90, gaining 0.50 percent, supported by buying interest in banking stocks near key support levels.
The index continues to maintain a positive medium-term structure on the weekly chart, remaining above its major moving averages. The daily chart also retains a positive undertone, although momentum indicators continue to signal a negative bias.
Bank Nifty formed a small bullish candle on the weekly chart and closed above the previous week's level, indicating a slightly positive bias.
The key levels are:
Support: 57,000
Resistance: 58,700
A decisive breakout above 58,700 or a breakdown below 57,000 would be required to establish the next directional move. Until then, consolidation within the 57,000–58,700 range is likely.
The BSE Sensex ended the week at 77,540.84, declining 0.60 percent amid continued profit booking.
Technical indicators and short-term moving averages on the weekly chart continue to support a positive medium-term outlook. However, the daily chart remains negative.
Immediate resistance is placed around 79,350, while 75,500 is the key support on the downside.
Resistance: 79,350
Support: 75,500
As long as the Sensex remains below 79,350, the short-term downward bias is likely to persist. A sustained move above this level could improve the technical outlook, while a break below 75,500 may increase selling pressure.
The market remains cautiously positive above crucial support levels, but traders should be prepared for volatility. For the Nifty, 24,000 and 24,500 remain the key levels that could determine the next directional move. For Bank Nifty, the 57,000–58,700 range is likely to remain important in the near term.
Elevated crude oil prices, geopolitical developments and global market cues could continue to influence investor sentiment.
Research support: Research Desk, MyEquityLab.com, a SEBI-registered research analyst (Registration No. INH000023843).
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Readers are advised to consult a qualified financial adviser and conduct their own due diligence before making investment decisions.
